Economist Kachaje denies Village Bank savings theft

Renowned business and leadership consultant Henry Kachaje has denied social media allegations that he run away with a K200 million from a village bank, descring the reports as “fake news.”

Kachaje in his rebuttal said the fake news could be work of foes bent on  jumping any opportunity to destroy his reputation.

He, however, said he  indeed joined a Village Bank in 2015 called GINCO as a mere member, saying he  believes Village Banks help promote a savings culture.

“ Since my joining, there have been three different executive committees. Last year, I, together with two others, were asked by the Chairperson of the group to serve in the executive committee.

“I do not have custody of the group cheque books, neither have I been involved in signing any of the group’s cheques,” said Kachaje, an economist.

He continued: “ As a new member to the executive committee, I noted that the group books from one year to another were not being closed off before starting a fresh cycle (year). As a result, the group had loans on its books from as far back as 2015.

“ I therefore pushed a motion in one executive meeting that this year, 2019, the books should be closed before  starting a new cycle in 2020 so that we have a realistic financial position of the group. This was a radical departure from previous practice.”

Kachaje explained that when  this was done, it became very clear that the group has been “technically bankrupt” for years. The group had accumulated huge bad debts from previous cycles and the performance of loans in the current cycle has not been very different.

He said the news was broken to the members at a meeting held on December 18 2019 where he  offered to speak on behalf of the Chairperson (having noted that discussions on the group’s WhatsApp chat had become very explosive).

Kachake saod  members were “too shocked, frustrated, agitated, angry, sad,”when  he  broke the bad news and that some have not been given their dues and the temperature of anger and frustration keeps rising.

“I am not surprised that others are now speculating that the money must have vanished”.

The economist said he strongly  believe that they  made the right decision not  to pretend all is rosy by covering up the losses as had been the practice previously by collecting fixed deposits from members.

“Unfortunately, this decision has punished members in this cycle, and this is regrettable.An independent committee comprising ordinary members has been set up to investigate and go through the books. An external auditor has also been engaged,” he added.

Kachaje, a former  Economics Association of Malawi (Ecama) president, said he had to reveal the information about Village  Bank in public to counter allegations about him.